VC chip funding: Down in June, up in quarter

SAN JOSE – Venture capital investments in semiconductor companies fell 76.2 percent to $32 million in June, according to the latest figures from the Global Semiconductor Alliance. The decline was an even steeper 81 percent when compared to VC spending in June 2011, GSA said.

Five chip companies received funding in June, down from ten in May and eight in June 2011. Sand 9 Inc., a U.S.-based MEMS specialist developing precision timing products for wireless and wired networks, took in $23 million.

Overall in the second calendar quarter, chip makers did well, taking in more than $400.5 million, up 95.8 percent from the first quarter and 52 percent from the same period last year. GSA said the figures are approximate because four companies did not disclose funding amounts in the quarter, compared to only one in the first quarter and four in the 2011 period.

An earlier report said VC funding overall was down about nine percent in the second quarter compared to the same period in 2011, However, it said semiconductor funding was up in the period, mainly due to two large late-stage investments.

One company, iWatt Inc., filed for a $75 million initial public offering in June. Nine mergers and acquisitions occurred during the month. The Micron Technology Inc. planned $2.5 billion acquisition of Elpida Memory Inc. was the largest of the period and the year to date, GSA said.